Retailers Expect Digital Transformation to Generate Greater Revenue and Profit
The SAP Digital Transformation Executive Study surveyed 3,171 executives to uncover the opportunities, challenges and trends of digital transformation and found:
- Fifty percent of midsize retail companies and 44 percent of large retail companies expect their revenue be 5 to 10 percent higher next year due to digital transformation.
- More than 50 percent of large and midsize retailers consider speed to market the most important revenue growth driver for the next two years, while investment in digital skills and technology is a priority (48 percent) for the top 100 retailers.
- Some 34 percent of midsize retailers and 27 percent of large retailers named effective management as the organizational attribute leading to successful digital transformation. Some 30 percent of the top 100 retailers credit their digital transformation achievements to up-to-date technology.
- All respondents reported that Big Data/analytics is the technology they most heavily invest in today. In response to questions about investments in machine learning, 25 percent of the retailers expect to invest heavily in the next two years.
“Retailers had a strong holiday season and their investments in Big Data are starting to pay off,” said Lori Mitchell-Keller, global general manager, Consumer Industries, SAP. “As they continue to personalize and enhance the overall consumer experience, it will be important for them to consider new technologies such as machine learning and AI. The key to their success with the ongoing digital transformation is ensuring they take a holistic approach to operating a digital core that puts their customers at the center of their business.”